Prosus–the largest investor in Swiggy–has decreased the size of its divestment in the Bengaluru-based firm to 109.1 million shares as against Rs 118.2 million.
The company is expected to announce its IPO price band on Wednesday. ET reported on Monday saying it will issue shares in the price band of 371-390 per share. At the upper end, this pricing would peg the SoftBank-backed company’s valuation at $11.3 billion.
During Tuesday’s trading hours, Zomato had a market capitalisation of Rs 2.21 lakh crore or around $26.5 billion on BSE. Zomato’s Blinkit is the market leader in quick commerce where it competes with Swiggy Instamart. Originally filed with Sebi in April, the IPO has evinced strong interest from global and domestic investors, including BlackRock, CPPIB, and SBI Mutual Fund.
Discover the stories of your interest
Prosus, which owns a 31% stake in Swiggy through its affiliate MIH India Food Holdings, is anticipated to recover more than half of its $1 billion investment by selling less than one-fifth of its holdings.
Swiggy’s last private valuation was $10.7 billion in January 2022, following a $700 million fundraising round led by US asset manager Invesco. In June, 360 One, one of the investors in Swiggy, valued it at $11.5 billion, per its internal report.
Swiggy’s early investors like Accel, Elevation Capital, Norwest Venture Partners will divest a part of their holding in the firm in Swiggy’s OFS. Swiggy’s founders Sriharsha Majety, Rahul Jaimini and Nandan Reddy are also partially selling their stakes in the public offering.
Majety-led Swiggy’s listed rival, Zomato, has also received a nod from its board to launch a Rs 8,500 crore through the qualified institutional placement (QIP) route.
